Chapter 17.112
COMMERCIAL CONDOMINIUM CONVERSION
Sections:
17.112.010 Purpose and intent. Revised 3/17
17.112.020 Definitions. Revised 3/17
17.112.030 Condominium conversion permit.
17.112.040 Condominium conversion permit application.
17.112.050 Application review and action.
17.112.060 Commercial condominium conversion requirements.
17.112.070 Administrative fees.
17.112.010 Purpose and intent.
This chapter shall provide for the conversion of projects where ownership of existing buildings is subdivided, whether such subdivision involves residential to commercial/industrial or commercial/industrial to commercial/industrial, and whether such conversion is to condominium, as defined in Section 1350 of the Civil Code, to community apartment projects, as defined in Section 11004 of the Business and Professions Code, or to stock cooperatives, as defined in Section 11003.2 of the Business and Professions Code.
This chapter recognizes that a conversion is different from new construction in that the owners of a unit in a conversion take responsibility for a building built under standards that may be less stringent than those that are currently required, and existing tenants may be displaced by a conversion. A conversion also differs from a leased or rental property in that the unit owner assumes long-term responsibility for the unit owned, for the common areas of the project, and the higher level of economic cost required to own instead of rent.
The intent of this chapter is to provide increased options for commercial development and business ownership opportunities. The further intent of this chapter is to mitigate the hardship caused by displacement of commercial tenants; and to assure that conversion projects maintain long-term economic value for the owner.
Therefore, such conversions shall be permitted, provided that they shall comply with the standards set forth in this chapter for the class of conversion proposed and all other applicable laws. (Ord. 2016-10 § 3 (part): Ord. 2007-08 § 1 (part))
17.112.020 Definitions.
The following definitions pertain to this chapter related to condominium conversions and new construction:
“Applicant” means the owner(s) or subdivider(s) with a controlling interest in the proposed project, and any successors in interest.
“Association” means the organization created to own, lease, manage, maintain, preserve and control the lots, parcels or areas of a project, or any portions thereof or interests therein owned in common by the owners of the separately owned condominium units.
“Commercial condominium project” means a commercial condominium project intended for commercial occupancy.
“Common area” means an entire condominium project excepting all units therein.
“Condominium” means and includes:
1. “Condominium” as defined by Section 783 of the Civil Code;
2. “Community apartment project” as defined by Section 11004 of the Business and Professions Code;
3. “Stock cooperative” as defined by Section 11003.2 of the Business and Professions Code; and
4. “Planned development” as defined by Section 11003 of the Business and Professions Code.
The term “condominium” specifically includes, but is not limited to, the conversion of any existing structure for sale pursuant to a method described in subsections (1) through (4) of this definition.
“Condominium conversion” or “conversion” means a change in the ownership of a parcel or parcels of property, together with structures thereon, whereby the parcel or parcels and structures previously used as rental units are changed to condominium ownership. Condominium conversion includes projects which have previously obtained final map approval, but have not proceeded to sell any of the units.
“Condominium project” or “project” includes the real property and any structures thereon, or any structures to be constructed thereon, which are to be divided into condominium ownership.
“Condominium unit” or “units” means the individual spaces within a condominium project owned as individual estates.
“Eligible tenant” means any tenant who was a resident of the condominium project proposed for conversion on the date notice of intent to convert is given as required by state law.
“Notice of intent to convert” means the notice required to be served upon tenants or prospective tenants pursuant to the requirements of Section 66427.1, 66452.8, 66452.9 or 66459 of the Subdivision Map Act. The definition includes both sixty (60) and one hundred eighty (180) day notices as further defined in the applicable section.
“Special category tenants” refers to persons or tenants who fall within one or more of the following categories:
1. “Elderly” means individuals sixty-two (62) years of age or older;
2. “Handicapped” or “permanently disabled” means as defined in Section 50072 of the California Health and Safety Code or 42 U.S.C. 423 and 24 CFR 8.3;
3. “Low income” or “very low income” means as defined in Section 17.200.020. (Ord. 2016-10 § 3 (part): Ord. 2007-08 § 1 (part))
17.112.030 Condominium conversion permit.
A. Condominium Conversion Permit Required. No condominium conversion shall be permitted unless the city council has approved the granting of a condominium conversion permit. The permit application shall be submitted to the community development department, shall be reviewed by the planning commission and the project shall meet all the requirements of this chapter.
B. Standard for Approval. No application for a permit pursuant to this chapter shall be approved unless the following findings are made:
1. The proposed condominium conversion meets all the development and other standards set forth in this chapter.
2. All notices required by the Winters Municipal Code or state law pertaining to condominium conversions have been properly and timely served.
3. For existing residential buildings, that at the time the application to convert is deemed complete, the percentage of multifamily rental units is at or above fifteen (15) percent of the total number of housing units in the city of Winters.
4. That conversion of the project to condominiums will not be contrary to the public health, safety and general welfare of the residents of the city, or the surrounding community.
5. That the proposed conversion is consistent with the general plan, zoning code and other applicable provisions of the Winters Municipal Code, including, without limitation, the city building codes. Notwithstanding any provisions to the contrary, the city council may impose conditions designed to achieve compliance and consistency with current city building codes prior to the time of occupancy of each unit of a project, however, the entire building shall fully comply with all city building codes related to the structural integrity of the building, earthquake standards and fire safety requirements prior to the sale or occupancy of any unit of the building.
6. For existing residential buildings, the proposed condominium conversion will not cause a net reduction in the number of rental or for sale multifamily units in the city which are affordable for low and/or very low income tenants.
C. Hearing. The planning commission shall hear any application for a condominium conversion permit and shall make a recommendation to the city council pertaining to the permit. The city council shall have final authority to approve or deny an application for a condominium conversion permit. The hearing shall be held concurrently with any tentative subdivision map application.
D. Expiration of Condominium Conversion Permit for Failure to Establish Use. An approved condominium conversion permit shall expire two years following the date the permit was approved by the city council. If an application for an extension of an approved condominium conversion permit is submitted prior to the expiration of the permit, the city council may grant a one-year extension of the permit upon a showing that: (1) the applicant has submitted an application to convert to the Department of Real Estate and is diligently pursuing conversion with the Department of Real Estate, and (2) that the applicant has submitted a final map for the project for approval by the city. Any extension of a permit shall be conditioned to require compliance with any new provisions applicable to such conversion projects and payment of all fees in effect at the time the extension is granted. (Ord. 2007-08 § 1 (part))
17.112.040 Condominium conversion permit application.
A. Acceptance of Application to Convert. The community development director shall accept applications for a condominium conversion permit and shall determine whether the standards and prerequisites for issuance of a permit as set forth in this chapter are met. After the review process set forth in this chapter, the community development director shall submit the application to the planning commission for review and recommendation and then to the city council for final action. No application for a condominium conversion permit shall be approved if the standards for approval set forth in this chapter are not met.
B. Condominium Conversion Application Contents. Recognizing that the conversion of existing structures that have been previously occupied and constructed as leased or rental units may present unique issues for present tenants and future buyers, the application for a condominium conversion permit shall include the following information:
1. A boundary map drawn to scale showing the location of all existing easements and structures;
2. The applicant’s proposal for the following:
a. Parking for each owner or business, including handicapped accessible parking, and
b. The management of common areas within the projects and minimum maintenance requirements for continued compliance with applicable health and safety standards as established by the city;
3. Preliminary Site Plan. The applicant shall submit a preliminary site plan. The preliminary site plan shall show all existing and proposed structures, parking areas (including handicapped parking areas), drive aisles, driveways, parking lot lighting, utilities (water, sewer, drainage, electrical, cable television and gas), garbage collection and pickup locations, and any other information required by the community development director or the city building official. The preliminary site plan shall show all existing and proposed landscaping, including existing trees and irrigation facilities;
4. Physical Needs Report. A report on the physical element of each structure and facility shall be prepared and submitted to the city. The report shall be full and complete, meeting all the requirements of this section, and in sufficient detail to evaluate the project. The report shall address the items set forth in this section and shall have been prepared within six months of submittal of the application:
a. A report detailing the structural condition of each major element of the property, including roofs, foundations, exterior siding and paint, electrical systems, outdoor lighting, plumbing systems, utilities, irrigation systems, drainage systems, mechanical equipment, paved and concrete surfaces, seismic stability, parking facilities, recreational facilities and fire protection systems, including fire alarm and sprinkler systems. Regarding each element, the report shall state: (i) when the element was originally constructed or installed, (ii) when the element was last repaired or replaced, and (iii) any variation in the current physical condition of the element from the requirements of the building codes in effect on the date of the preparation of this report. The report shall further identify each defective or unsafe element and set forth the proposed corrective measures to be employed and a timeline for completion of the corrective measures. The report shall be prepared by an appropriately licensed engineer or architect approved by the city, other than the owner. Each structure and facility (courtyards, storage areas, garages, etc.) shall be inspected as part of the report,
b. A structural pest control report shall be provided for each structure. This report shall be prepared by a licensed structural pest control operator in accordance with applicable state law,
c. A summary statement of repairs and improvements proposed to be made by the applicant necessary to refurbish and restore the project to achieve a high degree of safety and durability,
d. A phasing plan indicating the order and the locations of repairs and improvements to be made by the applicant;
5. Rental History Report. For existing residential buildings, the applicant shall submit a rental history report of rental rates for the units, detailing the current rental rates and the rates for the prior twelve (12) months, including any rental incentive(s) provided to the tenants;
6. Relocation Assistance/Ownership Incentive Report. For existing residential buildings or where residential tenants are currently occupying portions of a commercial condominium project, a report describing the relocation assistance, as identified under Section 17.112.060, shall be submitted;
7. Additional Information. If deemed necessary, based on the size, age, condition and/or improvements required in the proposed conversion project, the community development director, the city building official, the planning commission, or the city council may require the applicant to submit additional information to supplement that required by this section. Such additional information shall be used to better evaluate the application for a condominium conversion permit, and make proper findings and/or imposed conditions in accordance with the purposes, objectives and requirements of this chapter, the general plan, or any specific plan or element thereof in effect at the time of such application.
C. Notice of Proposed Conversion.
1. It is the intent of the notice provisions in this chapter that all tenants and prospective tenants receive all available information pertaining to the proposed conversion project in a timely manner. Any ambiguities in the notice provisions are intended to be read as broadly as possible to ensure full and complete information is provided to residents and prospective residents.
2. In addition to any notices required by state law, the applicant shall, at least sixty (60) days prior to filing an application for a condominium conversion permit, notify all the tenants of the project, and the community development director in writing, of the intended conversion. The notice must be provided in a single document and written in nontechnical language reasonably comprehensible to tenants and prospective tenants of the project. The notice shall include at least the following information and attachments:
a. A general description of the proposed project;
b. The name of the current owner and applicant and where such person or persons can be contacted;
c. The anticipated schedule of approval and conversion;
d. A copy of the city’s condominium conversion ordinance;
e. Notification of the tenant’s right to receive notice of hearings;
f. Notification of residential tenant’s right to receive notice of intention to convert prior to termination of tenancy due to the conversion, and to receive notice of final approval of the application within ten (10) days of approval of the final map;
g. A copy of the proposed relocation assistance plan for residential tenants as required by Section 17.112.060;
h. Notification that the tenants will be given ten (10) days’ written notice that an application for a public report has been or will be submitted to the Department of Real Estate and that such report will be available on request.
3. The notice of intent to convert shall be conspicuously posted at the on-site rental office location, if there is an on-site rental office, and in at least two common areas or the mail pickup area. In addition, said notices shall also be posted at each driveway entrance to the project site. All required notices of intent shall remain posted until the converted units are first offered for sale.
4. All prospective tenants shall be provided the written notice in this section at the time they are shown an apartment unit or commercial space, as applicable, and prior to the time a rental/lease agreement is executed. A signed copy of the notice shall be retained by the applicant as proof of compliance with this provision.
5. All notices required by the Subdivision Map Act shall be served by the owner as required by statute. The owner shall bear the cost of all publication, printing and delivery costs for required notices. Owner shall submit proof of noticing for all owner-served notices. (Ord. 2007-08 § 1 (part))
17.112.050 Application review and action.
A. The community development department shall review all applications for permits submitted pursuant to this chapter and make a recommendation to the planning commission and city council based on the standards set forth in this chapter.
B. Review by Staff.
1. When corrective work is identified in the reports required to be submitted with the application, or by subsequent site inspections by staff, or at staff’s direction, such work shall be incorporated as conditions of approval on the project if not corrected in advance of the first public hearing. All corrective work required shall be completed prior to the approval of a final map or the applicant shall enter into an improvement agreement with the city committing to the completion of the improvements in accordance with the Subdivision Map Act and the Winters Municipal Code.
2. The city shall charge a reasonable hourly fee (estimated as the actual cost to the city) for inspections required by this chapter. The applicant shall post a cash deposit in an amount equal to the estimated cost of inspection, as determined by the community development director, prior to any inspection services being provided.
C. Review by Planning Commission. The planning commission shall review the proposed condominium conversion project at a public hearing and shall make a recommendation to the city council. Notice of action by the planning commission shall be provided to all tenants and notice of the public hearing shall be provided as set forth in Government Code Chapter 2.7, commencing with Section 65090. All notices required by the Subdivision Map Act shall be served by the owner or city as required by statute. Owner shall bear the cost of all publication, printing and delivery costs for required notices incurred by the city. Owner shall submit proof of compliance with the notice provisions of this chapter not less than thirty (30) days prior to a hearing by the planning commission.
D. Review by the City Council. The city council shall have final review of a proposed condominium conversion project. The city council may approve or reject the project based on the standards set forth in the condominium conversion permit portion of this chapter, and the city council may impose additional conditions consistent with the review criteria. Notice of action by the city council shall be provided to all tenants and notice of the public hearing shall be provided as set forth in Government Code Chapter 2.7, commencing with Section 65090. All notices required by the Subdivision Map Act shall be served by the owner or city as required by statute. Owner shall bear the cost of all publication, printing and delivery costs for required notices incurred by the city. Owner shall submit proof of compliance with the notice provisions of this chapter not less than thirty (30) days prior to a hearing by the city council. (Ord. 2007-08 § 1 (part))
17.112.060 Commercial condominium conversion requirements.
All commercial condominium conversion projects must comply with the following requirements, which shall be incorporated into the conditions of approval on the project:
A. The applicant shall prepare a declaration of covenants, conditions and restrictions (CC&Rs) which shall be recorded and apply to each owner of a commercial condominium unit within the project. The CC&Rs shall be subject to the approval of the community development director and shall be recorded at, or prior to, the time of final map approval, and shall include all applicable conditions of approval and requirements of the city. The CC&Rs shall, at a minimum, provide:
1. That any amendment to the CC&Rs related to the conditions of approval or other requirements of this chapter may not be approved without prior consent of the city;
2. That there shall be an entity created (e.g., a property or homeowners’ association) which shall be financially responsible for and shall provide for the effective establishment, operation, management, use, repair and maintenance of all common areas and facilities;
3. A provision containing pertinent information regarding the conveyance of units and the assignment of parking, an estimate of any initial assessment fees anticipated for maintenance of common areas and facilities, and an indication of appropriate responsibilities for maintenance of all utility lines and services for each unit;
4. A provision addressing the payment of water, utilities, gas and electricity by the homeowner or through the association;
5. A provision requiring that any owner who rents his or her condominium unit shall utilize a professional property management company to manage the rental unit or that there exists a property owners’ association which is responsible for management of the common areas and enforcement of the CC&Rs.
B. Standards. The following standards shall apply to commercial condominium conversion projects:
1. Building Regulations. All structures within the project shall conform to the current provisions of Title 24 of the California Code of Regulations, as adopted and/or amended by the city of Winters, and other applicable city building, zoning and municipal codes and ordinances, except as provided herein. The provisions of the State Historic Building Code (California Administrative Code, Title 24, Part 8) shall be applicable in permitting repairs, alterations, and additions necessary for the preservation, restoration and continued use of a historical building or structure.
2. Fire Prevention. Each unit shall be provided with a fire warning system conforming to current applicable codes in effect in the city. All common walls of units shall be constructed and maintained in accordance with current building codes. The number and locations of fire extinguishers and hydrants shall be in accordance with current fire codes. Existing fire sprinkler systems shall be verified to be in good working order and meet standards for the system installed.
3. Vibration Transmission. All permanent mechanical equipment (such as motors, compressors, pumps and compactors) which are determined by the building official to be a source of structural vibration or structural-borne noise shall be vibration-isolated with inertia blocks or bases or vibration isolator springs in accordance with the standards in effect at the time the last building was constructed on the site.
4. Noise Standards. The structures shall conform to all interior and exterior sound transmission standards of the California Code of Regulations and applicable sections of the California Building Code. Where these standards cannot be feasibly met, in the discretion of the building official, reduced requirements may be allowed by the building official and the subdivider shall include notice of the deficiency in the final physical needs report.
5. Utility Metering. Each unit shall be individually metered for gas and electricity. If this requirement cannot be feasibly met, in the discretion of the building official, this requirement may be waived in the conditions of approval and a home or property owners’ association, or similar entity, shall be formed for the payment and billing of the applicable utility. At a minimum, separate exterior shutoff valves for water, gas and electricity shall be provided for each unit.
6. Disabled Access. The project site and every unit within the project shall comply with current building codes related to disabled access.
7. No television or radio antennas, dishes, or similar devices may be installed on the exterior of any building, except as required by law. All mechanical equipment and rooftop antennas shall be shielded from view.
C. Tenant Provisions.
1. No lease in good standing shall be terminated as a result of the conversion. Any tenant under an existing lease shall be offered the opportunity to remain in the unit until the lease expires. Tenants under an existing lease may terminate the lease after approval of the tentative map and the condominium conversion permit without penalty, but if terminated by the tenant prior to the owner serving the one hundred eighty (180) day notice required by Government Code Section 66427.1, shall not be entitled to any relocation or other benefits as provided in this chapter.
2. For existing residential buildings, a tenant relocation plan shall be prepared and shall meet and provide at least the following requirements:
a. All present tenants who are not in default under the rental agreement or lease under which they occupy their unit shall have not less than one hundred eighty (180) days’ notice from the date of receipt of notification from the applicant of its intent to convert as provided in Government Code Section 66427.1.
b. All tenants shall be provided with up-to-date information on available apartments of comparable size, quality and price located within a fifteen (15) mile radius of the apartments to be converted. Priority shall be given to assisting tenants in locating housing in Winters. Transportation shall be provided to assist each elderly or disabled nonpurchasing tenant in seeking alternative housing.
c. The economic terms of the tenant’s tenancy, including, but not limited to, rent and utilities allowance, shall not be modified to the detriment of the tenant during the period between the filing of a tentative map application or submittal of the condominium conversion application, whichever is sooner, and the date the tenant is required to relocate, or the date of the denial, withdrawal or expiration of the tentative map or condominium conversion permit.
d. The approved tenant relocation plan shall be incorporated into the conditions on the project and shall be provided to each tenant in the project within ten (10) days of approval of the condominium conversion permit.
D. Rental Assistance.
1. A rental assistance payment shall be provided to all tenants equal to one month’s current rent. Said payment shall be paid in one lump sum within fourteen (14) days of the date of their relocation. No more than one payment per unit is required. Payments under this section only apply to qualifying tenants who are not in default at the time they vacate the premises and were tenants at the time the sixty (60) day notice of intent to convert, required by Government Code Section 66452.9, was served.
2. Special Category Tenant. In addition to the rental assistance payment provided to tenants, any special category tenant shall be offered a one-time payment equal to one year’s rent in effect at the time they were provided a notice of intent to convert, or an eighteen (18) month lease extension in which the annual rent increase shall coincide with the increases as shown in the “rent, residential” component of the housing component in the consumer price index for all urban consumers in the Yolo Primary Metropolitan Statistical Area. Either option identified above is determined by the applicant and shall be identified in the tenant relocation plan.
3. All tenants who commence their tenancy after the date the notice of intent to convert required by Government Code Section 66452.9 and this chapter was served shall be notified in writing whether they will receive any rental assistance upon conversion. Tenants not properly noticed pursuant to the Government Code and required by this chapter shall receive relocation benefits regardless of date of tenancy.
E. Relocation Assistance. For all tenants entitled to rental assistance, the applicant shall arrange for the physical move of all tenants, at no cost to tenant, within a fifteen (15) mile radius of subject property or, at the applicant’s option, provide five hundred dollars ($500.00) in relocation assistance. No more than one such payment shall be made per unit.
1. No tenant, by virtue of the provisions of this chapter, shall have a vested right from the city to any of the benefits or other interest provided herein. Nothing in this chapter is intended to abridge any rights of tenants or obligations of owners as provided in state law.
F. Security Inspection and Plan. The property and all common areas shall be inspected by the Winters police department, who shall provide security recommendations to the applicant to address any physical safety and security issues such as lighting, landscape and similar physical elements. Items identified shall be incorporated into conditions of approval of the application and shall be completed prior to the approval of a final map or issuance of the first building permit, whichever is sooner. The applicant may request of the community development department that it enter into an improvement agreement with the city committing to the completion of the improvements prior to the occupancy of the sale of the first unit within the project.
G. Property Owners’ Association. Prior to the approval of a parcel or final map, a property owners’ association or similar entity shall be formed for any condominium conversion project. The association shall, at a minimum, provide for the administration, management and maintenance of all common areas, including landscaping, drive aisles and parking areas, maintenance of the exterior of all buildings, the collection of dues, payment of public utilities not billed separately to each unit, and enforcement of standards within the project. (Ord. 2007-08 § 1 (part))
17.112.070 Administrative fees.
The city council may, by resolution, establish reasonable fees and deposits to fully defray the cost of processing applications and proposals, inspections and for the administration of this chapter. (Ord. 2007-08 § 1 (part))